Increase in base salary: Insurance, allowances, etc. will increase accordingly.

From July 1st, the basic salary for officials, civil servants, public employees, and members of the armed forces will increase from 2.34 million VND to 2.53 million VND (according to Government Decree 161/2026).

The base salary is the basis for calculating the salaries of officials, civil servants, public employees, and members of the armed forces, with the formula: actual salary equals the base salary multiplied by the current salary coefficient.

A series of subsidies increased simultaneously.

Ms. Nguyen Nhung (Hoang Mai, Hanoi ) is a senior specialist at a government agency. With a coefficient of 4.4, Ms. Nhung estimates that an increase in the base salary will boost her salary by nearly 800,000 VND per month.

“The prices of everyday necessities like food and baby formula have been steadily increasing recently. The salary increase will help me cover the rising costs. We were overjoyed to hear about the increase,” said Ms. Nhung.

Besides the basic salary, a series of allowances based on the basic salary, such as social insurance, health insurance, pensions, and other benefits, have also increased. The one-time allowance for those giving birth or adopting a child under 6 months old increased from 4.68 million VND to 5.06 million VND. The funeral allowance increased from 23.4 million VND to 25.3 million VND. For monthly survivor's benefits, the amount received by each dependent increased from 1.17 million VND to 1.26 million VND per month.

The salary increase will impact the pensions of approximately 3.4 million beneficiaries. The additional cost compared to 2025 is 10,773 billion VND .

With an 8% increase, pensioners and recipients of social insurance benefits and monthly allowances with a benefit level lower than 3.8 million VND/month will continue to have their benefits adjusted upwards in two ways: an increase of 300,000 VND/person/month or an increase to the same level as 3.8 million VND/person/month.

Ms. Le Thi Tien, in charge of insurance at a ward in Hanoi, announced an increase in health insurance contributions for voluntary participants. For family health insurance, the first person will pay an additional 190,000 VND per year, bringing the total to 2,322,540 VND; the second person will pay nearly 72,000 VND more.

"The increase in health insurance premiums is causing concern among some people who pay voluntarily. Most people who buy their own health insurance are self-employed, have unstable incomes, or are elderly without pensions, so additional costs arise," Ms. Tien said.

For some financially autonomous public service units, increasing the base salary will impact the salary fund. Ms. TN, an employee of a financially autonomous public service unit in Hanoi, said that the salaries of officials and employees consist of two parts: salary based on the state coefficient and additional salary. While the total salary fund remains unchanged, the portion based on the state coefficient and insurance contributions increases, causing the second salary portion to decrease.

Many benefits will increase in line with the increase in the base salary. Photo: Social Security Administration.

"Workers may receive lower salaries when the base salary increases. This reality stems from the fact that the payroll fund remains unchanged, while insurance contributions increase, forcing agencies to adjust accordingly and comply with regulations. The increased insurance contributions help workers receive higher pensions in their old age," Ms. TN said.

Modern wage reform roadmap

During a recent discussion on increasing the basic salary, Mr. Pham Minh Huan, former Deputy Minister of Labor, War Invalids and Social Affairs (now the Ministry of Interior ), stated that the proposed increase to 2.53 million VND/month was calculated based on existing resources. According to Mr. Huan, salary increases should be within the state budget's ability to pay; a drastic adjustment without sufficient funding would put significant pressure on the budget and lead to many negative consequences.

Mr. Nguyen Quang Huy, CEO of the Finance and Banking Faculty (Nguyen Trai University), believes that the costs of education, healthcare, housing, utilities, and urban living are constantly increasing, so the additional salary helps to alleviate some of the financial pressure on many families.

According to Mr. Huy, this increase mainly helps improve adaptability to the new price level, rather than creating a major change in living standards. Especially in large cities, the pressure of spending on housing, raising children, and healthcare remains a significant challenge for many young civil servants and public employees.

"The policy of increasing the minimum wage usually creates a relatively positive ripple effect on the economy. When the income of millions of public sector workers improves, purchasing power in the economy is also better positioned to recover, especially in essential goods and services. This contributes to supporting domestic consumption – an increasingly important factor in the context of a volatile global economy."

"The retail, service, education, healthcare, and consumer sectors can benefit from the increased flow of money in society," Mr. Huy said.

In the long term, Mr. Huy believes that Vietnam needs to continue building a roadmap for salary reform that is modern, transparent, and linked to job positions, capabilities, and the effectiveness of public service performance. This is the foundation for improving the quality of the administrative apparatus and attracting high-quality human resources to the public sector.

Source: https://znews.vn/tang-luong-co-so-bao-hiem-tro-cap-tang-theo-post1655490.html